China's zinc exports hit 6-year high

China's zinc exports reached a six-year high in August, with most of the exports going through warehouses listed on the London Metal Exchange (LME), according to a Shanghai Metals Market observer.

China exported 21,200 tons of refined zinc in August, a 28-fold increase from a year ago, according to Chinese customs data.

Orders for electroplating and zinc from Chinese producers tend to rise in Q4, which will boost demand for zinc ingots, the analyst said. Concerns over zinc ore supply disruptions will continue. Currently, there are problems in order to lure investors into the zinc market, experts say.

Strong pressure on the zinc market in the country prompted an investigation into Qingdao's stock financing fraud. Cash flow problems to the zinc ore storage areas have contributed to the decline in export activity since June, especially in the customs areas.

In October, the price of zinc in China's domestic market is expected to rise, according to analysts from Shanghai CIFCO Futures in the latest forecast. A stronger dollar will also help strengthen zinc in the base metal market. However, market conditions have not improved in recent times, an analyst at COFCO Futures said, citing a sluggish real estate market in the country and a lack of fresh stimulus from the government and the banking sector.